FERRERO-WALDNER SEEKS ISRAELI CONTRIBUTION TO TIM

C O N F I D E N T I A L SECTION 01 OF 02 TEL AVIV 002459 SIPDIS E.O. 12958: DECL: 06/22/2016 TAGS: PREL EAID KPAL KWBG PGOV IS EUN GOI EXTERNAL ISRAELI PALESTINIAN AFFAIRS SUBJECT: FERRERO-WALDNER SEEKS ISRAELI CONTRIBUTION TO TIM AND OLMERT-ABBAS MEETING Classified By: Political Counselor Norman Olsen; Reasons 1.4 (B and D). ¶1. (C) SUMMARY: During a June 19-20 visit to Israel, European Commissioner for External Relations Benita Ferrero-Waldner sought Israeli support for the Temporary International Mechanism (TIM) and urged the GOI to contribute revenues collected on behalf of the Palestinian Authority through the mechanism. Israeli FM Tzipi Livni was positive but non-committal, saying that Israel needs to study details of the plan after it is fully developed. She suggested that aid recipients sign a statement supporting the Quartet principles. Ferrero-Waldner called Israeli plans to unilaterally evacuate settlements "courageous," but publicly stated that only negotiations can lead to peace. Livni reiterated GOI concerns with the Palestinian prisoners' document. END SUMMARY. -------------- - Visit Focus: Temporary International Mechanism -------------- - ¶2. (C) According to the EU Commission (EC) office in Tel Aviv, Ferrero-Waldner's main goal was to explain the TIM and solicit Israeli support. The EC described Livni's reaction as "positive overall," but acknowledged that the GOI had many detailed questions -- especially about the third window -- that Ferrero-Waldner could not answer. A member of Livni's staff said that Ferrero-Waldner strongly urged Israel to commit funds collected on behalf of the Palestinian Authority to the TIM "as soon as possible." Both the EC and MFA representatives agreed separately that Livni had rejected such a move for the time being, but had left open the possibility of transfers once the GOI has a chance to examine the details of the TIM. ¶3. (C) Livni's staff complained that the third window, as presented by Ferrero-Waldner, would essentially pay 75 percent of salaries to a large group of undefined "needy" individuals. They reiterated that salary payments remain an Israeli red line. The EC reported that the GOI had asked detailed questions about the method of payment and eligibility criteria. They added that Livni had suggested that all aid recipients sign a statement supporting the Quartet principles, an idea that Ferrero-Waldner found "impractical." -------------- -------------- Support for Negotiations; Faint Praise for Realignment -------------- -------------- ¶4. (C) The EC claimed that Livni was upset by the European Union's public insistence on Israeli-Palestinian negotiations. While Ferrero-Waldner told the Israeli press that "Prime Minister Olmert's realignment plan is a courageous and important step, and we are aware of the tremendous difficulties in evacuating settlements," she then added that, "the EU's position is that any unilateral step, like the realignment, will never bring lasting peace in the region. Real peace will be achieved only through a process of negotiations." The EC noted that Knesset Speaker Dalia Itzik (Kadima) invited her Likud predecessor -- and outspoken opponent of realignment -- Reuven Rivlin to her meeting with Ferrero-Waldner, and then let Rivlin attack PM Ehud Olmert's plan for almost an hour. The EC interpreted this unexpected step as a less-than-subtle attempt by the GOI to demonstrate that realignment faces serious obstacles in Israel and requires international support. ¶5. (C) Livni's staff said that Ferrero-Waldner pushed on several occasions for a meeting between PM Olmert and Palestinian President Mahmud Abbas. The EC representative said Livni attempted to lower expectations and "play for time," but acknowledged that a meeting will take place. -------------- GOI Problems with the Prisoners' Document -------------- ¶6. (C) According to the MFA, Livni told Ferrero-Waldner that the GOI intends to keep a low profile on the issue of a possible Palestinian referendum on the prisoners' document. An EC representative said that Livni called the referendum a positive step, but that she strongly cautioned that the document has serious problems and does not meet the Quartet's principles. The MFA added that Livni bluntly told her guests that the document "is not a basis for any negotiations or dialogue." ¶7. (C) Both the EC and MFA said that the EU Border Assistance Mission in Rafah was not raised during the visit. Ferrero-Waldner did urge Defense Minister Amir Peretz to keep the Karni crossing open and to increase the number of permits for Palestinians to work in Israel. ********************************************* ******************** Visit Embassy Tel Aviv's Classified Website: http://www.state.sgov.gov/p/nea/telaviv You can also access this site through the State Department's Classified SIPRNET website. ********************************************* ******************** JONES